No GST Payable by liaison Office in India : Tamil Nadu AAR

Takko are working as the liaison Office of M/s. Takko Holding GmbH, Germany with the prior permission of RBI.

1.Whether liaison office is liable to pay GST?

2. Whether a liaison office is required to be registered under GST Act?

3.Whether the Activities of a liaison office amount to supply of services?

Held

Liaison office is working as per the terms and conditions stipulated by RBI and the reimbursement of expenses & salary of employees is paid by Mls Takko Holding GmbH to the liaison office. No consideration for any activity is being charged by the liaison office and the liaison office does not have any business activities of its own as specified by RBI conditions.

Takko is acting as an extension of the German Office in its procurement activities from suppliers in India as has been spelt out in the RBI permission letter. Hence, they are neither related nor distinct persons, but are in fact working as employees of the foreign
office. A

None of the liaison activities of Takko is covered under the definition of supply. Hence, Takko would not be a supplier under CGST /SGST Act and hence is not required to obtain registration under Section 22
of CGST /SGST Act or pay CGST, SGST or IGST as applicable

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